Firm Size Wage Differentials in Switzerland: Evidence from Job Changers

University of Linz Working Paper No. 9901

14 Pages Posted: 9 Mar 1999

See all articles by Rudolf Winter-Ebmer

Rudolf Winter-Ebmer

Johannes Kepler University Linz - Department of Economics; Institute for Advanced Studies (IHS) - Department of Economics & Finance; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Josef Zweimüller

University of Zurich - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 1999

Abstract

We analyze firm size wage differentials by not only studying wage changes of workers who move between firms of different size classes but also by explicitly analyzing the underlying mobility decisions. Our analysis is based on a new data-set for Switzerland.

We consider the OLS size premium as a distinct determinant of individual wages and ask how this wage-component affects the dynamics of individual wages over time and the mobility and search behavior of workers. We find no evidence for the hypothesis that larger employers provide worse working conditions, but about half of the OLS size differential is accounted for by worker heterogeneity.

JEL Classification: J31, J33, J63

Suggested Citation

Winter-Ebmer, Rudolf and Zweimueller, Josef, Firm Size Wage Differentials in Switzerland: Evidence from Job Changers (January 1999). University of Linz Working Paper No. 9901, Available at SSRN: https://ssrn.com/abstract=143853 or http://dx.doi.org/10.2139/ssrn.143853

Rudolf Winter-Ebmer (Contact Author)

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Josef Zweimueller

University of Zurich - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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IZA Institute of Labor Economics

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Germany